Insurance Industry Gross Premium Hits N532.7bn In Q3, 2022

The gross premium of insurance industry rose to N537.7 billion as at the end of the third quarter, 2022, increasing by N170 billion from N369 billion in Q2, it was learnt.

Similarly, total claims paid as at Q3, 2022 rose by N68.6 billion from N174billion in Q2, 2022 to N242.6 billion in Q3, 2022. 

According to ‘Synopsis of the Insurance Market Third Quarter 2022’ report released by the National Insurance Commission(NAICOM) yesterday,  insurance claims component is the essence of insurance business as a whole and indeed a major factor in consumer confidence building.

Although, the N242.6billion total gross claims in Q3, 2022, declined by 2.3 per cent when  compared to the corresponding period of 2021, the  net claims paid in Q3, 2022, however, stood at about N207.2 billion, signifying 85.4 per cent of all gross claims reported during the period.

The Life Insurance business recorded  95 per cent claims settlement against all the reported claims while non-life segment stood generously at 72.4 per cent during the same period

The report stated that the Nigerian Insurance industry, in the third quarter of 2022, was a virtue of an excellent performance in the financial services sector of the economy. 

A breakdown of the gross premium income reported shows that  Life Insurance Business recorded N221.8 billion; Oil & Gas reported N95.9 billion; Fire insurance added N66.2 billion to the gross premium pool while Motor Insurance posted N45.3 billion, even as Gen. Accident insurance recorded N34.8 billion.

The industry generated N36.7 billion from Marine business and N32 billion from Miscellaneous, thereby, amounting to N537.6 billion total gross premium as at Q3, 2022. 

To this end, Non-Life insurance business continued its market dominance at 58.4 per cent of the total premium generated. Further breakdown in this segment show Oil & Gas was the leading  at 30.8 per cent followed by Fire Insurance at 21.3 per cent. Motor Insurance came third at 14.6 per cent while Marine & Aviation, Gen. Accident and Miscellaneous reported a share of 11.8 percent 11.2 percent and 10.3 percent respectively.